जानें कि म्यूचुअल फंड कोर्स से एनएफओ क्या है और ऑफर डॉक्यूमेंट क्या हैं

2.1. एनएफओ क्या है?

• एसेट मैनेजमेंट बिज़नेस द्वारा ऑफर की जाने वाली नई स्कीम के लिए पहली बार सब्सक्रिप्शन ऑफर को न्यू फंड ऑफर (NFO) के रूप में जाना जाता है. स्टॉक और सरकारी बॉन्ड जैसी सिक्योरिटीज़ खरीदने के लिए आम जनता से फंड जनरेट करने के लिए मार्केट में एक नई फंड ऑफर शुरू की गई है.
• इनिशियल पब्लिक ऑफरिंग (IPO) एक नए फंड ऑफर (NFO) के समान है. दोनों ही संचालन का विस्तार करने के लिए फंड जुटाने की पहल हैं. निवेशकों को फंड के शेयरों में निवेश करने के लिए प्रोत्साहित करने के लिए डिज़ाइन की गई मजबूत मार्केटिंग पहल से नए फंड ऑफर का पालन किया जा सकता है. सार्वजनिक रूप से ट्रेडिंग शुरू करने के बाद, नए फंड ऑफर में अक्सर बेहतरीन रिटर्न की संभावना होती है.
• दूसरे शब्दों में, जब फंड हाउस एक नया म्यूचुअल फंड प्लान बनाता है, तो इसे एनएफओ के रूप में जाना जाता है. इसी प्रकार स्टॉक मार्केट IPO (इनिशियल पब्लिक ऑफरिंग) के अनुसार, फंड हाउस फंड के उद्देश्य के अनुसार सिक्योरिटीज़ खरीदने के लिए शुरुआती पैसे प्राप्त करने के लिए NFO को नियुक्त करते हैं.
• एनएफओ केवल सीमित समय के लिए खुला है, और निवेशक उस समय के दौरान शुरुआती ऑफर पर ही प्रोग्राम में निवेश कर सकते हैं. भारत में म्यूचुअल फंड में NFO की कीमत आमतौर पर म्यूचुअल फंड स्कीम के टुकड़े के लिए रु. 10 पर सेट की जाती है. After the NFO period has ended, current and new investors can only buy units in the plan at a set price, which is considerably greater than the NFO price.

There are 3 relevant dates related to NFO –

• शुरू होने की तिथि

It refers to the date on which the fund opens for subscription to the public.

• समापन तिथि

It refers to the date on which the fund closes for subscription to the public.

• Subscription Reopening Date

After the NFO is over, the scheme will be open for entry and exit as it will now be a listed fund. The date at which the fund becomes available for trading in the stock market is the subscription reopening date.

2.2 Procedure For Investing In An NFO

There are two ways in which one can invest in NFO. Investing in NFO is a relatively painless process, and you can use any of the options listed below to do so. All of the methods have their own advantages; let’s take a closer look and see what they are.

• Using a Broker

This is likely the most simple technique of investing in an NFO. You can always contact a broker for assistance in investing in a new fund offer. Always double-check that the broker you’re speaking with is a licensed one. Your broker can assist you in completing all of the necessary paperwork for the NFO application. One of the most significant advantages of investing through a broker is that you get doorstep services as well as information on the fund’s future results.

• Through a Trading Account on the Internet

This is a different way to invest that is also very convenient. You must have an online trading account if you currently invest in stocks and mutual funds. NFOs can also be invested using the same account. The NFO units can be bought and sold via the internet. The Net Asset Value (NAV) of the investments made can also be tracked using the online trading account.

2.3 Points To Consider While Investing In New Fund Offer

Background Check of the Fund House

• The primary aspect to consider when investing in NFOs is to analyse the reputation of the fund house that has launched it. You can take a look at past performance of fund manager. It is also important to check the credibility of fund house before investment. The qualification and experience of the fund manager play a vital role in the fund’s performance.
• New entrants in the mutual fund industry usually have less experience as compared to the existing fund houses that have survived various market cycles. One must analyse the performance of the fund house and the performance it has delivered during various phases of the markets. If it has a proven track record, then there is a possibility that the NFO will be managed prudently and may perform well.

Fund objectives

• The new fund offers are launched along with scheme related information in the documents such as Scheme Information Document (SID), product presentation, etc. These documents highlight the main objectives of the fund, the asset allocation, investment strategy, benchmark index, level of risk, liquidity, fund management team, and other relevant information.
• One should read all the scheme related documents carefully to develop a perception of the viability of the NFO. In simple words, the offer documents are provided to help potential investors understand the investment process and how the fund manager/s will manage the invested amount. Do note that, your investment goals must align with the mutual fund’s objectives to make it a worthy investment for your portfolio.

रिस्क प्रोफाइल

• The most important aspect to consider before investing in any NFO is to ensure your risk tolerance. Investing in NFOs can be a risky proposition because it does not allow you to readily check the performance track record like you would with existing funds. Ensure that your risk appetite balances with the fund’s risk profile.
• You should not invest in any NFO that indicates high risk when your risk tolerance is moderate to low. Hence, it is crucial to analyse the risk factor before investing in NFOs. In addition, check if your portfolio is capable of surviving the market volatility as well.

इन्वेस्टमेंट हॉरिजन

• The investment horizon plays an important role when you invest in NFOs, as some have lock-in-periods wherein you are required to stay invested for a specific tenure. This means, you may be unable to redeem it before maturity; and you could be charged an exit load. Evaluate these aspects carefully before investing in NFOs and ensure that your investments are in-line with your investment horizon and goals.

Minimum Subscription Amount

• The new fund offer sets a certain investment restriction with a minimum subscription amount constraint. The minimum investment amount is clearly mentioned in the SID and the application form. It may range from as low as Rs 500 to Rs 5,000. In case, if the minimum subscription amount is higher than what you planned, you can consider opting for the Systematic Investment Plan (SIP), if it is available in the particular NFO.

Cost of Investment

• An overall cost involved in investment is one of the factors that weigh on your potential returns. Most of the NFOs do not have any entry load, but some do charge an exit load. It is deducted from the total redemption amount, which includes your returns, if you redeem before the desired tenure of investment.
• Another element that may affect your returns is the expense ratio. It is the annual fees charged to manage your money invested in the fund. Ensure the fund has a lower expense ratio, as per the SEBI norms.

Theme of the NFO

• It is important check the investment theme. This means where fund house is planning to invest money. Their investment theme (small cap, mid cap, large cap, balance etc.) should match with your objective.
• In addition to this if fund house has unique investment strategy one should look at that.

2.4 Disadvantages Of Investing In NFO

• No Performance History

As it is new fund offer you cannot find detail about past performance. In absence of performance history, one cannot perform a quantitative or qualitative analysis.

• High Initial Expenses

The initial expenses on marketing of fund and launch are manage out of NAV of fund over the period. This clearly means that return on new fund will be affected.

• Not cheaper than other Peers

It is a myth that new fund offer means fund available at cheaper rate. The fund is launched with a value of Rs.10 only. The fund collected from investors is used for investing in equity and based on the performance of equity NAV will be declared.

• Diversification is Limited

The New fund offer limited or less diversification. These are focused fund mid cap, large cap or small cap. As fund offer limited diversification it is risky to invest in the fund.

2.5 Offer Document

Similar to the prospectus of a newly listed company, the Offer Document is the most important source of information about mutual fund scheme for investors. It is a legal document and it and describes the product and all the important aspects surrounding its management and maintenance. The OD discloses the following components –

• The names and background of fund managers;
• Details of the investor relation officer;
• Details of the AMC and its directors;
• Details of the custodian and the registrar;
• Details of the transfer agent; and
• Details of the statutory auditor.

Important Offer Document

1. Scheme information document (SID)

This document comprises the details of one specific mutual fund scheme.

It is a comprehensive document providing nearly every bit of information related to the scheme. Here are the key sections that are important to read:

• • स्कीम का प्रकार

यह सेक्शन दर्शाता है कि क्या स्कीम ओपन-एंडेड है या क्लोज़-एंडेड है और क्या यह इक्विटी, डेट, हाइब्रिड या अन्य प्रकार की स्कीम है. जबकि ओपन-एंडेड स्कीम को किसी भी समय म्यूचुअल फंड के साथ रिडीम किया जा सकता है, तो क्लोज़-एंडेड स्कीम को केवल निर्धारित अवधि के बाद (म्यूचुअल फंड के साथ) रिडीम किया जा सकता है या स्टॉक एक्सचेंज पर बेचा जा सकता है, जहां वे सूचीबद्ध हैं. इक्विटी फंड में उच्च रिटर्न की क्षमता होती है, हालांकि उच्च जोखिम के साथ; डेट फंड में इक्विटी की तुलना में कम रिटर्न की क्षमता होती है, लेकिन इसमें कम जोखिम भी होता है. हाइब्रिड फंड (पार्ट इक्विटी और पार्ट डेट) में मध्यम जोखिम-रिटर्न क्षमता होती है.

• • निवेश का उद्देश्य

This section enumerates what the scheme aims to achieve. You can find out about the goals of the fund and the expected composition of the underlying portfolio. You can also get a fair idea of the strategies that the fund manager will use to achieve the said objectives. Match these objectives with your investment objectives (i.e. whether to generate regular income through investment in debt instruments or provide long-term capital appreciation through investment in equity and equity-related instruments) and your risk appetite.

• • उपयुक्तता

यह सेक्शन बताता है कि किस प्रकार के निवेशकों को स्कीम पर विचार करना चाहिए. उदाहरण के लिए, ओपन-एंडेड इक्विटी स्कीम के लिए, यह बताएगा कि स्कीम उन निवेशकों के लिए उपयुक्त है जो मुख्य रूप से इक्विटी में निवेश के माध्यम से ओपन-एंडेड स्कीम की लिक्विडिटी के साथ उच्च-विकास वाली कंपनियों में लॉन्ग-टर्म कैपिटल एप्रिसिएशन और निवेश चाहते हैं. यह आपको यह तय करने में मदद करता है कि क्या आप इसके उद्देश्यों और जोखिमों के आधार पर स्कीम में आरामदायक निवेश करेंगे.

• • रिस्कोमीटर

This is a visual that looks like the speedometer of a car; it indicates the level of risk inherent in the scheme. It has five sections- low, moderately low, moderate, moderately high, high. The needle points to the level of risk attributed to the scheme. This helps you assess whether you will be comfortable with the inherent risk in the scheme.

• • एसेट एलोकेशन

This section states how much of the corpus will be invested in each asset class. The mix between debt & equity is provided

• • बेंचमार्क इंडेक्स

इंडेक्स जिसके लिए स्कीम के परफॉर्मेंस की तुलना की जाएगी, यहां बताया गया है. उदाहरण के लिए, इक्विटी फंड के लिए, बेंचमार्क इंडेक्स स्टैंडर्ड एंड पूअर्स बॉम्बे स्टॉक एक्सचेंज (S&P BSE) सेंसेक्स या निफ्टी 500 हो सकता है. यह आपको बेंचमार्क के रूप में उपयुक्त इंडेक्स की तुलना में स्कीम के परफॉर्मेंस का आकलन करने में मदद करेगा.

The SID will also provide details such as the plans available (direct plan or regular plan), minimum, maximum and incremental investments, scheme expenses that investors need to bear, systematic investment plan/systematic transfer plan (SIP/STP) information, dividend policy and similar information. Other than these sections, a large amount of legal and process-based content may help you in better understanding the fund.

2. Statement of additional information (SAI)

The Statement of Additional Information (SAI) is a supplementary document provided along with the mutual fund’s prospectus. The document contains additional information about the mutual fund. It also contains multiple disclosures regarding the functionality of the mutual fund. The document is not a mandatory attachment and does not need to be sent to prospective investors except upon request. The statement of additional information helps the mutual funds expand on the details about the funds that are not disclosed within the prospectus. Regular updates take place within the Statement of Additional Information.

It carries the following information:

• Definitions, abbreviations
• Information about the mutual fund (e.g. constitution of the fund, sponsor, trustee, asset management company)
• How to apply for schemes of the mutual fund
• Rights of unit holders
• How securities are valued by the fund
• Tax, legal and other information

3. Key Information Memorandum

किम ऑफर डॉक्यूमेंट (ओडी) का संक्षिप्त वर्ज़न है. सेबी के नियमों के अनुसार, हर एप्लीकेशन फॉर्म के साथ किम होना चाहिए. पहली बार निवेशक को विस्तृत ऑफर डॉक्यूमेंट पढ़ना चाहिए, एएमसी से परिचित होने के बाद, वह केवल किम को रेफर कर सकता है.

4. फंड फैक्टशीट

म्यूचुअल फंड फैक्ट शीट एक बेसिक थ्री-पेज डॉक्यूमेंट है जो म्यूचुअल फंड का ओवरव्यू देता है. संभावित निवेशकों के लिए, अधिक गहराई से जानने से पहले यह एक आवश्यक और आसान रिपोर्ट है.

फैक्ट शीट आपको निम्नलिखित जानकारी देगी:

• फीस: फंड खरीदने से पहले, आपको यह विश्लेषण करना होगा कि फंड के मैनेजर को भुगतान की गई फीस सहित यह किस फीस के साथ आती है. अच्छे रिटर्न को उच्च फीस से आसानी से दूर किया जा सकता है.
• Risk assessment: फैक्ट शीट दिखाएगी कि फंड कितना जोखिमपूर्ण है. आपकी आयु और अन्य होल्डिंग के आधार पर, फंड आपके लिए बहुत जोखिम भरा हो सकता है.
• रिटर्न: The fact sheet will show the fund’s results over the last 10 years. This is crucial to know before you buy a fund, as it gives a sense of the fund’s history and current trajectory.